The Sunday Brew #64
In this brew - Tobacco Use Around the World in a Picture | Goodhart's Law & Parkinson's Law | Musk's $55B Paycheque, PayTM's Regulatory Crisis and Congressional Hearing on Child Safety
Welcome to The Sunday Brew, weekly 1-2-3 newsletter by The Percolator. Every Sunday we drop in your inbox 1 story in a picture, 2 concepts, ideas or frameworks to expand your horizons and 3 news from the week, to keep you updated.
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ONE STORY IN A PICTURE
TWO IDEAS, FRAMEWORKS OR CONCEPTS
This week we bring to you two concepts - Goodhart's Law & Parkinson's Law
Goodhart's Law
Goodhart's Law is a principle that states: "When a measure becomes a target, it ceases to be a good measure."
This concept is often discussed in the context of economics and refers to the idea that once a metric or indicator is used as a target for decision-making or evaluation, it can lead to distortions in behaviour. People may manipulate their actions to meet the specific target, which can undermine the original purpose of the metric.
In a business context, it's crucial to be aware of Goodhart's Law when setting key performance indicators (KPIs) or metrics for evaluating success. Relying solely on a single metric can result in unintended consequences as individuals or teams may prioritize meeting that metric at the expense of broader goals or overall performance. It emphasizes the importance of considering the broader context and using a combination of metrics to make well-informed decisions.
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Parkinson's Law
Parkinson's Law is a satirical adage that states: "Work expands to fill the time available for its completion."
The law was first articulated by Cyril Northcote Parkinson in a humorous essay published in The Economist in 1955. While originally intended as a jest, it has since been widely observed and discussed in various contexts.
The essence of Parkinson's Law is that tasks or projects often take longer than necessary because people tend to use up the entire allotted time, even if the task could have been completed more efficiently. This phenomenon is attributed to factors such as procrastination, perfectionism, and the tendency to allow work to expand to fit the time frame set for it.
Parkinson's Law is not a strict scientific principle, but it serves as a reminder to be mindful of time management and to set realistic deadlines for tasks. It suggests that imposing constraints on time can lead to increased efficiency and productivity by discouraging unnecessary delays.
THREE NEWS FROM THE WEEK
Delaware Judge Voids Elon Musk's $55 Billion Pay Package from Tesla
A Delaware judge has voided Elon Musk's $55.8 billion pay package from Tesla, ruling that the compensation was inappropriately set by the electric-vehicle maker's board.
The judge found that the board breached its fiduciary duties and that the pay deal was "unfathomable" and should be cancelled. This decision, which Tesla can appeal, could potentially impact Musk's position as the richest person in the world, as the pay package represented a significant portion of his wealth. The ruling means that Tesla's board will have to come up with a new compensation package for Musk, and it raises questions about corporate governance and executive compensation Read More»»»
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Paytm Faces Regulatory Crisis After RBI Notification
The Reserve Bank of India (RBI) has imposed major restrictions on Paytm Payments Bank, prohibiting it from accepting fresh deposits and conducting credit transactions after February 29, 2024.
This action follows the RBI's findings of significant irregularities in the bank's Know Your Customer (KYC) process, posing risks of data mishandling and money laundering. Despite the looming deadline, Paytm founder Vijay Shekhar Sharma has reassured users that the Paytm app will continue to operate. However, the company's valuation has plummeted as there are speculations about the potential permanent suspension of Paytm Payments Bank. Read More»»»
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Social Media CEOs Grilled in Heated Congressional Hearing on Child Safety
In a tense and emotional hearing, the CEOs of five major social media platforms - Meta, TikTok, X, Discord, and Snap - were grilled by U.S. Senators on Wednesday, January 31st, 2024. Lawmakers accused the companies of failing to adequately protect children from online predators, harmful content, and addictive algorithms.
The CEOs faced tough questions and demands for accountability, with some senators expressing frustration and calling for increased regulation of social media platforms. Despite the high stakes and intense scrutiny, the hearing was described as "anti-climactic" and a "missed opportunity" to hold the social media leaders accountable for their platforms' impact. Read More»»»
The Sunday Brew by The Percolator brings to you curated news on tech, business & entrepreneurship, from across the internet to give your week a perfect start.
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